Chicago has become one of the country's best cities for technology firms. But our nonprofit sector needs the same nurturing if it's going to thrive.

Thanks in large part to the tech ecosystem we've created, Chicago has become one of the country's best cities for technology firms. But looking at our nonprofit sector, which also serves communities and creates jobs, I've concluded that it needs the same nurturing if it's going to thrive.

Last month, Crain's broke the story about plans for the new American Sports Museum, a nonprofit institution combining sports and education in a unique manner—a concept I developed with a few friends. The response we received was overwhelming, to say the least. The story was picked up by the Tribune, other print and internet outlets, and even TV stations. Calls and emails from New York to California to Australia congratulated us on developing a great concept and wished us luck. More than 20 Chicago professionals I've never met have volunteered to help us. And my mom tells all her friends about it: the true indicator of a good idea.

While the well wishes and humble brags from mom are all much appreciated, the hard part has begun—obtaining the funding to bring this unique vision to life for the City of Chicago and the community. Now, consider that for a moment.

Recently I visited 1871, one of the key pieces of a strong technology incubation ecosystem in Chicago—an ecosystem that includes angel investors, venture capitalists, mentors, incubators, and a process to make sure everyone has access to the resources they need. Ideas in technology, if they are good, can find funding and support in any number of places via the ecosystem. This brings jobs and tax revenues to Chicago and has positioned the city at the very center of Silicon Prairie. We should be quite proud.

Where, though, is the analogous ecosystem for nonprofits? I can tell you from first-hand experience, it simply does not exist. And without it, we can't be sure that innovative ideas to educate, serve our kids and the community, promote health and well-being, or any address any number of noble causes have the opportunity to incubate. Of course, they must pass muster, but they should have the same chance as great tech ideas.

Photo

Erik Unger

Inside 1871.

Philanthropic funds today go only to the big, established institutions. They are certainly worthy. But, if we continue down that path, we can't expect innovation on the scale we need and have seen in other industries. Who's really innovating in tech today and disrupting industries? Hewlett-Packard? Blackberry? Dell? No, it's Uber, Facebook, AirBNB, and the brilliant men and women running around 1871.

I understand and appreciate that the tech sector, unlike the nonprofit sector, has a profit motive. I was a for-profit employee and entrepreneur for 20+ years. That said, if the community wants more innovative ideas to improve our city, we need support and clear paths to success for innovative nonprofit organizations.

Nonprofits do not drain the economy. In Chicago, they create tens of thousands of jobs, generate tax revenues and help educate CPS and other area students in ways our schools can't. And they do something even the tech folks don't—they bring tourists to visit. The Shedd, Field Museum, Museum of Science and Industry, Art Institute of Chicago and the other great Chicago museums—all nonprofit—bring thousands, if not millions, of tourists to our doorstep.

Chicago needs a non-profit funding ecosystem to ensure that the best ideas have the chance to blossom, just like tech. In fact, we need those nonprofits to ensure ten years from now that Chicago has a well-educated workforce to become tomorrow's tech entrepreneurs, and that those entrepreneurs have employees with the right skills to work for them.

Who will step up? If only I had thought of Star Wars before George Lucas…